Premier Gold revenues decline on changing geological interpretations
Premier Gold Mines reported yesterday a 50% decrease in its 2018 Q2 revenues due to decreased production.
At the company’s South Arturo Mine, the reduction was due primarily to the completion of mining in Phase 2 pit.
At Premier’s Mercedes Mine production and costs were impacted by differences in the ore body geometries as compared to the original models.
“This redesign at Mercedes resulted in a development intensive first half of the year, with increased costs per ounce, so programs are underway to support the company’s longer-term growth objective of increased annual production over the next several years,” writes Premier Gold in a news release.
During the quarter $6.2 million was spent on exploration which contributed to a net loss of $7.7 million.
Total capital spending at Premier Gold Mines (TSX:PG) was $6.1 million.
The company carried a cash balance of $67.8 million after paying down its debt of $20 million and held inventory of 3,956 ounces of gold and 17,073 ounces of silver at the end of the quarter.
Written with material from Premier Gold Mines Ltd